The group's sales amounted to €3.283bn (£2.486bn), down 3.5% on 2006, and translating to a net result of €42m.

For Agfa Graphics, the higher costs of aluminium used to produce plates and other raw materials took an extra €66m off the bottom line, although the company said that cost-cutting measures almost completely offset this.

The escalating value of the euro against other currencies also took its toll. Across the year, net sales were down 5.6% to €1.617bn including currency effects.

For the quarter, the graphics division pulled in sales of €416m, down 6.3%. However, taking out the effects of the euro and other currencies, the drop was 2.8%.

In the UK, however, Agfa put in a reasonable performance. According to managing director Laurence Roberts, pre-press sales were up 1%.

"We are quite happy with our performance last year," he said.

However, the delay in rolling out it inkjet product meant the costs of R&D were not offset by sales of a new product, expected to be announced 18 March.

"It took a lot longer to make the product robust enough for the commercial market," Roberts told printweek.com.

"We weren't able to sell anything like the amount of inkjet I had budgeted for. We're a year behind where we wanted to be in terms of revenues."

However, Roberts said he expects to sell as many as 40 inkjet machines into the UK in 2008.

"I'm quite confident we will double last year's [numbers]," he said.

He also said consumables sales in 2008 had so far been strong for the UK, with a 7% rise.

Agfa said it expected a steady pre-press market in 2008 with digital sales offsetting the decline in analogue, but warned that high raw materials costs may continue to effect results despite cost-cutting measures.

It is also hoping that its inkjet portfolio is ready for the market, and targets a 10% share by 2010.

It said its plan to spin off its divisions into separate businesses remains on track, but that it would look at all its options across the year.

The group's shares were off some 20% during trading today on the Brussels exchange.